6 Tips for buying your first home insurance policy

Posted on Aug. 25, 2017

In the flurry of excitement that is purchasing a home as a first-time homeowner, you may not have home insurance at the forefront of your mind. However, home insurance is a vital part of being a responsible homeowner.

Having home insurance ensures that your property as well as yourself, your family, and any guests you bring into your home, are protected. Finding the right home insurance policy can be an overwhelming undertaking, especially if it is your first time. So here are some tips to help make the process a little easier.

Don't be afraid to ask questions

Don't be afraid to speak to your broker and ask them whatever questions you have regarding your policy that may come to mind. And don’t worry, there is no such thing as a “stupid question”, your insurance broker is there to help you and make the process as simple and easy for you. If you are curious about any discounts that may be available to you, the best practice is to ask your broker directly to understand what discounts are out there and what you may be eligible for.

Familiarize yourself with insurance terminology and practices

While searching for home insurance for the first time, speaking with a broker or reading a policy may seem overwhelming. Something as simple as looking up common insurance terminology will give you a better understanding of what you are hearing and reading.

For example, learning what a deductible is and what it means to raise or lower it will help you understand your policy and what you are paying for. It is also helpful to know what kind of home insurance is out there, and what the difference types of policies can provide you. The more knowledge you acquire the easier it will be for you to spot and obtain a fair rate for the level of coverage you require.

Know what you have in your home that you want to insure

As a first time homeowner you may not know that you are able to insure many items in your home under your home insurance policy. It is a good idea to take inventory of what you own, and what you would want to insure. Some items may be automatically covered under your policy, while other may require additional premiums for added coverage.

Be wary about what aspects of your home may affect your premiums

Many different factors come into play when determining the cost of your home insurance premiums, and chances are there may be various aspects of your home that count among them. It is important to know your home and how things like pipes, location, renovations, etc can affect the cost of your home insurance.

Be open to revealing your credit score

Insurance providers see value in looking into the credit scores of their customers. Insurers believe that a persons credit score is a good reflection of their fiscal responsibility and they use said score to help determine risk and the cost of potential premiums. It is not a mandatory action, but by allowing your insurer to view your credit score, assuming it is in good standing, you may be privy to discounts on your insurance policy.

Shop around

Because every provider calculates premiums differently, or can offer different discounts or services than another, the best way to ensure that you are getting the right coverage for you and your home is to shop around.